TMI BlogMonetary Penalties to be imposed by an Insolvency Professional Agency.X X X X Extracts X X X X X X X X Extracts X X X X ..... 24(2)(d) of the Schedule to the IBBI (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016. 2. The Bankruptcy Law Reforms Committee, which conceptualised the Code, had envisaged: IP agencies will have the flexibility to impose a graduated system of penalties, where minor non-compliances will result in monetary fines, and major violations will result in expulsion from the agency . 3. In the interest of objectivity and uniformity, it has been decided that an IPA shall amend its Bye-laws to provide for the maximum and minimum monetary penalty, where the Disciplinary Committee decides to impose such penalty on its professional members, under Clause 24(2)(d) of the Schedule to the IBBI (Model By ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Tribunal. Up to ₹ 2,00,000 or 25% of fee, whichever is higher, subject to a minimum ₹ 1,00,000. 6. Outsources his duties and obligations. Up to ₹ 2,00,000 or 25% of fee, whichever is higher, subject to a minimum ₹ 1,00,000. 7. Fails to appoint registered valuers, wherever required, under the Code or Regulations made thereunder, for conducting valuation. Up to ₹ 2,00,000 or 25% of fee, whichever is higher, subject to a minimum ₹ 1,00,000. 8. Fails to supply the information called for or to comply with the requirements of informati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Contravenes any provision of the Bye-laws, or Regulations for which no specific penalty has been provided. Up to ₹ 1,00,000 or 25% of fee, whichever is higher, subject to a minimum ₹ 50,000. 4. Further, the IPA shall amend its Bye- Laws to incorporate Clause 24(5) of the Schedule to the IBBI (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016 as inserted by IBBI ( Model Bye-Laws and Governing Board of Insolvency Professional Agencies) (Third Amendment) Regulations, 2021 . 5. This circular is issued in exercise of powers under section 196 of the Insolvency and Bankruptcy Code, 2016. 6. This Circular shall come into force wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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